NSPA and Industry PREPARED FOR Czech Defence and

NSPA and Industry PREPARED FOR Czech Defence and Security Industry Association 30 April 2019 PRESENTED BY Peter DOHMEN General Manager

Outline • • • General Overview; Procurement process; Current engagement CZE Opportunities; Conclusion. NATO UNCLASSIFIED NSPA; Peter DOHMEN – General Manager 2

NSPA Evolution 1958 2012 2015 NATO Maintenance and Supply Agency Central Europe Pipeline Management Agency In-service support focus NATO Airlift Management Agency NATO UNCLASSIFIED Peter DOHMEN – General Manager Acquisition Role 3

Agency Direction Vision: . . . NATO’s premier life cycle management (including acquisition) and services provider, effectively and efficiently delivering integrated capabilities for NATO, its Nations and Partners including support to operations and exercises. Mission: … provide responsive, effective and cost-efficient acquisition, including armaments procurement; logistics; operational and systems support and services to the Allies, NATO Military Authorities and partner nations, individually and collectively, in time of peace, crisis and war, … maximize the ability and flexibility of their armed forces, contingents, and other relevant organisations, within the guidance provided by the NAC, to execute their core missions. NATO UNCLASSIFIED Peter DOHMEN – General Manager 4

NSPA Organizational Design NATO NORTH ATLANTIC COUNCIL (NAC) NSPO AGENCY SUPERVISORY BOARD ü 1450 NATO International Civilians NSPA GENERAL MANAGER (Approved positions) BUSINESS UNITS CENTRAL EUROPE PIPELINE SYSTEM (CEPS) NATO AIRLIFT MANAGEMENT (NAM) SUPPORT TO OPERATIONS LIFE CYCLE MANAGEMENT SUPPORT FUNCTIONS PROCUREMENT FINANCE HUMAN RESOURCES INFORMATION TECHNOLOGY NATO UNCLASSIFIED Peter DOHMEN – General Manager 5

Support to Operations Deployed team: 50 NSPA staff / • Base Support Services • Catering Services • Airfield Services • Engineering Services Afghanistan 2525 contractor personnel Kosovo • Fuel • Construction Iraq • Equipment Support Mali • Transport and storage • Medical Services NATO UNCLASSIFIED Peter DOHMEN – General Manager 6

Trust Funds – NSPA as executing agent 44 NATO Trust Fund projects (€ 100 M) since 1998 • • Capacity building & training De-militarization & de-mining Ammo disposal & hazardous waste GEO, UKR, EGY, MRT, MDA, IRQ, AFG, … 85 CSTC-A projects (US$700 M) tasked • • • Mi-17 Uniforms Medical supplies Infrastructure Training NATO UNCLASSIFIED Peter DOHMEN – General Manager 7

Life Cycle Management NATO UNCLASSIFIED • Systems Acquisition • Equipment and spare parts procurement • Supply & Services • Maintenance, Repair and Overhaul • Engineering services, • Modifications, Upgrades • On-site Technical Assistance Air C 2 • Simulation & Documentation • Management and Expertise Joint ISR … • Transport and Storage • Disposal ins a m o d All Land Maritime Air Multinational Cooperation Platform Missiles & Ammo Peter DOHMEN – General Manager 32 Support Partnerships (> 300 members) 8

32 Support Partnerships in place Aviation & Unmanned Aerial Systems Missiles (Missile systems) & Ammunition § § § § Multinational Multi Role Tanker Transport (MRTT) Fixed-Wing Aircraft Helicopters Alliance Ground Surveillance (AGS) Unmanned Aerial Systems (UAS) Land Combat § § Land Combat Vehicles (LCV) Night Vision & Optroelectronics (NVO) Artillery Rocket & Missile Systems (ARMS) BOXER Specialized Surveillance – Command & Control § § § Alliance Future Surveillance and Control (AFSC) Air Command Control System Level of Operational Capability 1 Ground-Based Air Defence (GBAD) AN/FPS-117 Radar RAT 31 Radar RADAR NATO UNCLASSIFIED PATRIOT STINGER HAWK SIDEWINDER AMRAAM Air-to-Surface Missiles Land Combat Missiles (LCM) Ammunition Support § § § § § Strategic Airlift Interim Solution (SALIS) Common Item Materiel Management (COMMIT) Naval Logistics Support (NLSP) Demilitarization, Dismantling & Disposal (D 3) Operations Logistics Support (OLSP) Global Positioning System (GPS) Multifunctional Information Distribution System (MIDS) Cryptographic, Communications and Electronic (CCE) Equipment NSPA Routing Hub (NRH) Peter DOHMEN – General Manager 9

Finance and Compliance • 100% Customer Funded; • No Profit - No Loss! – Business Model; • Funding: Customers only pay for the services requested; • Budget: NSPA operates two: Operational and Administrative Budgets; • Overhead portion of the admin costs are allocated to all customers via a fair allocation key; • NATO Financial Regulations; • NSPO is annually audited by IBAN. NATO UNCLASSIFIED Peter DOHMEN – General Manager 10

Business Trend in KEUR Source: Commitments Frozen EOY 2004 -2017 Commitments Frozen EOY 2018 situation as of 31/1/2019 5, 000 4, 500, 000 4, 000 3, 500, 000 3, 000 2, 500, 000 2, 000 1, 500, 000 1, 000 500, 000 0 2004 2005 2006 2007 2008 2009 2010 LOGOPS Log Ops – 2014 drop related to ISAF drawdown Include Support to OCCAR TIGER & A 400 M NATO UNCLASSIFIED 2011 CEPS 2012 2013 2014 2015 2016 2017 2018 NAMP NAM – peaks reflect multi-year commitments related to sustainment/training through FMS LOGOPS - 2017 Purchase of 5 MRTTP 1, 039 MEUR Peter DOHMEN – General Manager 11

Outline • • • General Overview; Procurement process; Current engagement CZE Opportunities; Conclusion. NATO UNCLASSIFIED NSPA; Peter DOHMEN – General Manager 12

NSPO Regulatory Framework • NSPO Charter – Art. 11 (a). Power to Award Contracts • NATO Financial Regulations – Art. 32 • NSPO Procurement Regulations 4200 • NATO Security Investment Programme AC/4 -D/2261 NATO UNCLASSIFIED Peter DOHMEN – General Manager 13

NSPA Procurement Policy Objectives: Single Source: • Quality, Time, Price. • Urgency; • Low Value; Principles: • Security; • Consolidation; • Commonality of Equipment. • Competition; • Industrial Benefits Redistribution. FMS SINGLE SOURCE FMS COMPETITIVE Limiting Competition: • NATO nations; • Partnership nations. NATO UNCLASSIFIED Peter DOHMEN – General Manager 14

NSPA Contract Award Process Pre-contract award claim and dispute procedure Proposals received • • 1. Kept in safe until after closing date Late proposals not taken into consideration 2. PROPOSALS SELECTION 3. 4. PRE-AWARD Selection of the best proposal • NATO UNCLASSIFIED Unsuccessful bidders informed Article 11 of NSPO Procurement Regulations • Team of procurement and programme personnel AWARD 5. INFORMATION Award of Contract • Lowest fully responsive offer (technical compliance + lowest offer) Peter DOHMEN – General Manager 15

Procurement Facts and Figures NSPA in 2018 181 Workforce: 181 people work directly in Procurement 3. 5 BN€ >10000 Value of contracts placed: Industry in Source File : 3. 5 BN € over 10 000 firms throughout NATO 60 Procurement Administrative Lead Time for Supplies: 60 days 11 058 Number of contracts awarded: 11 058 (without Call-Offs) Activities monitored by International Board of Auditors NATO UNCLASSIFIED Peter DOHMEN – General Manager 16

Value of Contracts placed in Czech Republic/ Value of Purchases by Czech Republic through NSPA MEUR Value of Contracts placed in Czech Republic 80 Value of Purchases by Czech Republic through NSPA 72. 54 67. 5 70 60 50 40 28. 40 30 20 14. 86 33. 76 30. 82 25. 54 30. 2432. 35 15. 4116. 24 13. 25 10 0 2013 % TOTAL NSPA 0. 62% 1. 19% NATO UNCLASSIFIED 2014 0. 64% 1. 56% 2015 2016 2017 2018 1. 02% 2. 71% 1. 14% 2. 48% 0. 69% 0. 75% 0. 47% Peter DOHMEN – General Manager 17

NSPA Future Business Opportunities* *https: //eportal. nspa. nato. int/e. Procurement/FBO/Future. Business. Opportunities. List. aspx TOTAL as on 25 April 2019 Services Supplies 1. Infrastructure 16 2 2. Aeronautics 15 64 3. Land Systems 10 28 4. Radar / Communications 11 16 5. Missiles 3 9 6. Tents / Camp support 7 5 7. Power Generation 2 8 8. Clothing 0 9 9. Miscellaneous 36 28 TOTAL 100 169 269 FBO’s NATO UNCLASSIFIED Peter DOHMEN – General Manager 18

CONCLUSION • NSPA procurement principle is ICB; • NSPO regulatory framework is coherent with EU Directives; • Procurement basic rule is Lowest Price, Technically Compliant but best value and competitive dialogue/negotiated procedure feasible; • Significant growth potential for CZE Industry participation; • NSPA uses e. Procurement techniques (publication, electronic data interchange, supplier registration …). NATO UNCLASSIFIED Peter DOHMEN – General Manager 19